KANSAINER - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 3.8

📈 Kansai Nerolac shows stable fundamentals and improving technicals, making it a moderately strong swing trade candidate.

🎯 Optimal Entry Price: ₹245–₹250

🚪 Exit Target (if already holding): ₹265–₹275

🔍 Positive

• 📈 MACD at 0.81 suggests early bullish crossover.
• 📈 RSI at 48.6 is neutral, offering room for upward movement.
• 📈 Price near 50 DMA and 200 DMA (₹248 and ₹251), indicating support zone.
• 📈 Volume significantly above weekly average (9.19L vs 4.49L), showing strong market interest.
• 📈 Debt-to-equity ratio of 0.03 reflects a conservative capital structure.
• 📈 FII holding increased by 0.21%, showing foreign investor confidence.

⚠️ Limitation

• 📉 P/E of 30.7 is below industry average (42.6), but still relatively high for its growth rate.
• 📉 ROE of 10.4% and ROCE of 14.0% are moderate compared to top peers.
• 📉 DII holding declined by 0.17%, indicating cautious domestic sentiment.
• 📉 Dividend yield of 1.00% is modest for income-focused investors.
• 📉 PEG ratio of 1.63 implies valuation is slightly stretched relative to growth.

📉 Company Negative News

• 📉 PAT dropped from ₹231 Cr to ₹137 Cr QoQ, indicating margin pressure or seasonal impact.
• 📉 52-week Index at 45.8% shows limited recovery from yearly highs.

📈 Company Positive News

• 📈 EPS of ₹12.6 supports valuation and earnings visibility.
• 📈 FII inflows and strong volume suggest renewed interest in the stock.
• 📈 Company maintains low debt and stable profitability amid sector challenges.

🎨 Industry

• 🎨 Paints and coatings sector benefits from real estate recovery, urbanization, and renovation trends.
• 📉 Risks include raw material cost inflation and competitive pricing pressure from peers like Asian Paints and Berger.

✅ Conclusion

• 📈 Kansai Nerolac is a moderately strong swing trade candidate with improving technicals and stable fundamentals.
• 🎯 Entry near ₹245–₹250 with exit around ₹265–₹275 is recommended for short-term traders.
• 📊 Long-term investors should monitor margin trends and sector dynamics for sustained upside.

I can also compare Kansai Nerolac with Asian Paints or Akzo Nobel to help you identify stronger swing setups in the paints sector.